The CEO of Stellantis, the company created by the merger of Peugeot and Fiat's parent companies, has said that a decision about whether to make a new investment in the UK will most likely be made in the next few weeks.
Photo: Stellantis
The company's decision is something of a test for the reformed and rebranded carmaker, as well as for Brexit.
PSA, the parent company of Peugeot, said in 2019 that it would like to keep its facility in Ellesmere Port, northern England, open, which would be hugely helped by manufacturing the new Vauxhall/Opel Astra there.
On December 24, Brussels and London secured a tariff-free trade deal which is dependent on the amount of local content in goods, the rules of which become stricter as the decade progresses with regard to greener vehicles. Stellantis CEO Carlos Tavares said that the company should reach compliance.
“We are now deciding where we are going to put those investments and we do not forget ... that we have a strong asset, which is a brand called Vauxhall,” he said at a press conference - his first since the official creation of the company last Saturday.
Read more: Peugeot given green light on merger with Fiat
“Most probably we will be able to make a decision within a few weeks.”
Tavares also repeated his promise not to close facilities as a result of the merger.
Stellantis brands include Citroen, Peugeot, Vauxhall and Fiat and the company sold around 340,000 units in the UK in 2019. However, it manufactured only 62,000 Astra cars, a large portion of which were exported.
Tavares also gave a warning about the effect of the 2030 UK ban on the sale of new combustion engine-only vehicles, but he said the Brexit agreement had made it possible to make its investment in electric vehicles in either the UK or the EU.
“The biggest market is on the continental European side so if you look at it from a pure logistic perspective or from a paperwork perspective, perhaps it is better to put it in continental Europe.”
“It depends also on the UK government willingness to protect some kind of automotive industry.”
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